UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4450
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FRANKLIN TEMPLETON GLOBAL TRUST
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(Exact name of registrant as specified in charter)
ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Address of principal executive offices) (Zip code)
MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: (650) 312-2000
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Date of fiscal year end: 10/31
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Date of reporting period: 4/30/03
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ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT
FRANKLIN TEMPLETON
HARD CURRENCY FUND
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YOUR FUND'S GOAL AND PRIMARY INVESTMENTS: FRANKLIN TEMPLETON HARD CURRENCY FUND
SEEKS TO PROTECT AGAINST DEPRECIATION OF THE U.S. DOLLAR RELATIVE TO OTHER
CURRENCIES. THE FUND SEEKS TO ACHIEVE ITS GOAL BY INVESTING IN HIGH-QUALITY
MONEY MARKET INSTRUMENTS (AND FORWARD CONTRACTS) DENOMINATED IN FOREIGN MAJOR
CURRENCIES (AS DEFINED IN THE FUND'S PROSPECTUS) WHICH HISTORICALLY HAVE
EXPERIENCED LOW INFLATION RATES AND WHICH, IN THE VIEW OF THE INVESTMENT
MANAGER, FOLLOW ECONOMIC POLICIES CONDUCIVE TO CONTINUAL LOW INFLATION RATES AND
CURRENCY APPRECIATION VERSUS THE U.S. DOLLAR OVER THE LONG TERM.
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We are pleased to bring you Franklin Templeton Hard Currency Fund's semiannual
report for the period ended April 30, 2003. During the six months under review,
U.S. economic activity was mixed, and economic indicators, such as various
purchasing manager indexes, exhibited expansionary activity through much of the
period only to contract once again in the last two months of the reporting
period. This general trend reflected increased economic uncertainty in
underlying macroeconomic conditions and geopolitical events in Iraq. Consumer
confidence wavered, but consumer spending was generally stable, with continued
support from wage growth as well as access to low consumer, auto and mortgage
financing, although perhaps less than in previous periods. Excess production and
labor capacity, as indicated by continued relatively low capacity utilization
and persistent unemployment
The dollar value, number of shares or principal amount, and complete legal
titles of all portfolio holdings are listed in the Fund's Statement of
Investments (SOI). The SOI begins on page 14.
SEMIANNUAL REPORT
4
rates, had yet to diminish and helped limit core inflationary pressures. Given
risks to growth combined with a benign inflationary environment, the Federal
Reserve Board lowered interest rates 50 basis points (0.50%) to 1.25% in
November 2002. In our opinion, the low yields relative to other major economies,
combined with lower expected return on investment in the U.S. equity markets,
failed to attract enough foreign asset flows necessary to offset the increase in
the current account deficit, putting downward pressure on the U.S. dollar.
U.S. dollar weakness and continuing monetary easing in many developed economies
remained predominant themes in major currency markets during the reporting
period. While some U.S. dollar volatility emerged with the onset of conflict in
Iraq, currency markets appeared to refocus on existing underlying macroeconomic
conditions, primarily U.S. current account deficit deterioration and balance of
payment financing conditions. Additionally, historically low U.S. interest rates
and increased U.S. equity market volatility drove demand, in our opinion, for
non-U.S. dollar assets during the period, in which investors sought higher
yielding and higher returning assets outside the U.S. Global economic
uncertainty combined with disinflationary pressures in certain major economies
prompted central banks to further reduce interest rates. By the end of the
reporting period, short-term interest rates, as measured by the 3-month Treasury
bill or comparable security, stood at 1.11%, 2.42%, 3.44% and 5.29% in the U.S.,
Germany, Sweden and New Zealand, respectively.
Economic growth in the euro area during the six-month period remained sluggish,
hampered by weak domestic demand and currency strength impacting external
demand. The euro's appreciation over the past several months, however, helped
cap
WHAT IS A CURRENT ACCOUNT?
A CURRENT ACCOUNT IS THAT PART OF THE BALANCE OF PAYMENTS WHERE ALL OF ONE
COUNTRY'S INTERNATIONAL TRANSACTIONS IN GOODS AND SERVICES ARE RECORDED.
SEMIANNUAL REPORT
5
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA USED IN PRINTED GRAPHIC AS FOLLOWS:
Asset Allocation by Currency
Based on Total Net Assets
4/30/03
European Monetary Unit (euro) 30.2%
Swiss Franc 21.0%
New Zealand Dollar 16.6%
Danish Krone 9.8%
Swedish Krona 8.4%
Australian Dollar 6.6%
U.S. Dollar 3.3%
Canadian Dollar 2.1%
Norwegian Krone 2.0%
inflationary pressures and, combined with slowing growth, was one reason the
European Central Bank lowered the reference rate during the period from 3.25% to
2.50%. The significant appreciation of the euro and some other peripheral
European currencies against the U.S. dollar during the period reflected, in
part, U.S. economic imbalances, but also the strength in European current
account positions and yield differential relative to those of the U.S. Although
recent economic conditions and lower inflation risks allowed central banks in
the peripheral European region to ease rates, most rates remained significantly
greater than in the U.S. and core Europe, which in our opinion helped support
other currencies' strength. Norway's Norges Bank lowered rates from 7.0% at the
beginning of the period to 5.0% on April 30, 2003, and the Riksbank of Sweden
lowered rates from 4.25% to 3.5%.
In Asia, the Japanese economy continued to be challenged by consumer price
deflation and weak domestic demand. External demand, however, remained healthy
and helped support overall aggregate demand during the period. The Australian
and New Zealand dollars were among the top performing currencies during the
period. In our view, positive economic growth and high interest rate
differentials relative to the U.S. drove demand for Australian and New Zealand
assets over the past six months, particularly as investors sought higher
yielding instruments given low U.S. yields. Australia's central bank left
interest rates unchanged at 4.75%, while the Reserve Bank of New Zealand cut
rates by 25 basis points to 5.50% late in the period due to currency strength,
sluggish global economic growth and the potential for risks to the trade sector
to negatively impact domestic demand.
SEMIANNUAL REPORT
6
For the six-month period ended April 30, 2003, Franklin Templeton Hard Currency
Fund - Class A had a cumulative total return of +12.03%, as shown in the
Performance Summary beginning on page 10. The Fund's benchmark, the J.P. Morgan
3 Month Global Cash Index, returned 11.25% during the same period. 1 The Fund's
relatively large weightings in European and dollar-bloc currencies and
zero-percent position in the Japanese yen during the reporting period supported
the Fund's performance. Additionally, performance during the period reflected
the secular adjustment of the U.S. dollar against other major currencies, which
we believe will continue, although perhaps at a more gradual rate.
During the six months under review, the Danish krone, euro, Swedish krona and
Swiss franc appreciated 13.05%, 12.94%, 12.21% and 9.01%, respectively, against
the U.S. dollar. The New Zealand, Australian and Canadian dollar returns were
15.67%, 12.96% and 8.97%, respectively, while the Japanese yen returned 3.03%
against the U.S. dollar. The strong currency returns were due to the U.S.
dollar's depreciation against most major currencies, which in our opinion was
largely a function of the deterioration of the U.S.'s broad balance of payment
position.
There are special considerations associated with global investing related to
market, currency, economic, social and political factors, as discussed in the
Fund's prospectus. Because a significant amount of the Fund's assets are
denominated in foreign currencies, there is potential for significant gain or
loss from currency exchange rate fluctuations. A non-diversified foreign Fund
may not be appropriate for all investors and should not be considered a complete
investment program.
WHAT IS BALANCE OF PAYMENTS?
BALANCE OF PAYMENTS IS A RECORD OF ALL OF A COUNTRY'S EXPORTS AND IMPORTS OF
GOODS AND SERVICES, BORROWING AND LENDING WITH THE REST OF THE WORLD DURING A
PARTICULAR TIME PERIOD. IT HELPS A COUNTRY EVALUATE ITS COMPETITIVE STRENGTHS
AND WEAKNESSES AND FORECAST THE STRENGTH OF ITS CURRENCY.
1. Source: J.P. Morgan. The J.P. Morgan 3 Month Global Cash Index is designed to
measure the performance of euro-currency deposits in 11 global markets. The
index is unmanaged and includes reinvested distributions. One cannot invest
directly in an index, nor is an index representative of the Fund's portfolio.
SEMIANNUAL REPORT
7
We thank you for your continued investment in Franklin Templeton Hard Currency
Fund, welcome your comments or suggestions, and look forward to serving your
future investment needs.
Sincerely,
/S/SIGNATURE
Alex Calvo
/S/SIGNATURE
Michael Hasenstab, Ph.D.
Portfolio Managers
Franklin Templeton Hard Currency Fund
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This discussion reflects our analysis, opinions and portfolio holdings as of
April 30, 2003, the end of the reporting period. Our strategies and the Fund's
portfolio composition will change depending on market and economic conditions.
These opinions may not be relied upon as investment advice or an offer for a
particular security. The information is not a complete analysis of every aspect
of any market, country, industry, security or the Fund. Statements of fact are
from sources considered reliable, but the advisor makes no representation or
warranty as to their completeness or accuracy. Although historical performance
is no guarantee of future results, these insights may help you understand our
investment management philosophy.
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SEMIANNUAL REPORT
8
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Please note that although the Fund's Statement of Investments on page 14 of this
report indicates the Fund held 33.4% of its portfolio investments in U.S.
dollar-denominated assets as of 4/30/03, its NET EXPOSURE to the U.S. dollar as
of that date was only 3.3%. The difference is explained by the Fund's holdings
of forward currency exchange contracts (please see Note 6 in the Notes to
Financial Statements on page 23 of this report) calling for the purchase of
various foreign currencies in exchange for U.S. dollars at various future dates.
The combination of U.S. dollar-denominated instruments with "long" forward
currency exchange contracts creates a position economically equivalent to a
money market instrument denominated in the foreign currency itself. Such
combined positions are an appropriate strategy when the money market for a
particular foreign currency is small or relatively illiquid.
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MICHAEL HASENSTAB joined Franklin Templeton Investments in July 1995 and
rejoined the company in April 2001 after obtaining his Ph.D. Currently, Dr.
Hasenstab is a portfolio manager and analyst for the International Bond
Department. He specializes in country asset selection, macroeconomic modeling
and sovereign credit analysis in emerging and developed international fixed
income and currency markets. He also has a regional research focus in the Asia
Pacific, African, Russian, and eastern European economies. Dr. Hasenstab has
worked and traveled extensively in Asia, published research on China's financial
market, and consulted global companies on Asia Pacific investments and strategy.
Dr. Hasenstab holds a Ph.D. in economics from the Asia Pacific School of
Economics and Management at Australian National University, and a B.A. in
international relations/political economy from Carleton College in the U.S.
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SEMIANNUAL REPORT
9
PERFORMANCE SUMMARY AS OF 4/30/03
DISTRIBUTIONS AND RETURNS WILL VARY BASED ON EARNINGS OF THE FUND'S PORTFOLIO
AND ANY PROFITS REALIZED FROM THE SALE OF THE PORTFOLIO'S SECURITIES, AS WELL AS
THE LEVEL OF OPERATING EXPENSES FOR EACH CLASS. THE PERFORMANCE TABLE DOES NOT
REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
PRICE AND DISTRIBUTION INFORMATION
CLASS A CHANGE 4/30/03 10/31/02
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Net Asset Value (NAV) +$0.58 $9.14 $8.56
DISTRIBUTIONS (11/1/02-4/30/03)
Dividend Income $0.4180
ADVISOR CLASS CHANGE 4/30/03 10/31/02
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Net Asset Value (NAV) +$0.57 $9.15 $8.58
DISTRIBUTIONS (11/1/02-4/30/03)
Dividend Income $0.4351
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CLASS A: Subject to the current, maximum 2.25% initial sales charge. Prior to
8/3/98, Fund shares were offered at a higher initial sales charge; thus actual
total returns would have been lower.
ADVISOR CLASS: No initial sales charge or Rule 12b-1 fees and are available to a
limited class of investors.
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SEMIANNUAL REPORT
Past performance does not guarantee future results.
10
PERFORMANCE SUMMARY (CONT.)
PERFORMANCE
CLASS A 6-MONTH 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return 1 +12.03% +21.60% +13.77% +12.41%
Average Annual Total Return 2 +9.47% +18.93% +2.15% +0.95%
Value of $10,000 Investment 3 $10,947 $11,893 $11,121 $10,987
Avg. Ann. Total Return (3/31/03) 4 +20.64% +2.12% +1.03%
Distribution Rate 5 2.57%
30-Day Standardized Yield 6 1.07%
ADVISOR CLASS 7 6-MONTH 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return 1 +12.10% +22.03% +15.46% +14.63%
Average Annual Total Return 2 +12.10% +22.03% +2.92% +1.37%
Value of $10,000 Investment 3 $11,210 $12,203 $11,546 $11,463
Avg. Ann. Total Return (3/31/03) 4 +24.17% +2.94% +1.47%
Distribution Rate 5 2.97%
30-Day Standardized Yield 6 1.47%
1. Cumulative total return represents the change in value of an investment over
the periods indicated and does not include sales charges.
2. Average annual total return represents the average annual change in value of
an investment over the periods indicated and includes any current, applicable,
maximum sales charge(s). Six-month return has not been annualized.
3. These figures represent the value of a hypothetical $10,000 investment in the
Fund over the periods indicated and include any current, applicable, maximum
sales charge(s).
4. In accordance with SEC rules, we provide standardized average annual total
return information through the latest calendar quarter.
5. Distribution rate is based on an annualization of the respective class's
March quarterly dividend and the maximum offering price (NAV for Advisor Class)
per share on 4/30/03.
6. Yield, calculated as required by the SEC, is based on the earnings of the
Fund's portfolio for the 30 days ended 4/30/03.
7. Effective 1/2/97, the Fund began offering Advisor Class shares, which do not
have sales charges or a Rule 12b-1 plan. Performance quotations for this class
reflect the following methods of calculation: (a) For periods prior to 1/2/97, a
restated figure is used based upon the Fund's Class A performance, excluding the
effect of Class A's maximum initial sales charge, but reflecting the effect of
the Class A Rule 12b-1 fees; and (b) for periods after 1/1/97, actual Advisor
Class performance is used reflecting all charges and fees applicable to that
class. Since 1/2/97 (commencement of sales), the cumulative and average annual
total returns of Advisor Class shares were +2.90% and +0.45%.
- --------------------------------------------------------------------------------
Ongoing market volatility can significantly affect short-term performance; more
recent returns may differ from those shown. Investment return and principal
value will fluctuate with market conditions, and you may have a gain or loss
when you sell your shares. The Fund's investments in foreign companies can
involve exposure to currency volatility and political, economic and regulatory
uncertainty. The Fund's assets are largely invested in foreign currencies, and
therefore involve potential for significant gain or loss from currency exchange
rate fluctuations. The Fund does not seek to maintain a stable net asset value
and should not be considered a substitute for a U.S. dollar money market fund.
These and other risks are described more fully in the Fund's prospectus.
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For more current performance, see "Funds and Performance" at
franklintempleton.com or call 1-800/342-5236.
Past performance does not guarantee future results.
SEMIANNUAL REPORT
11
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Financial Highlights
CLASS A
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SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED OCTOBER 31,
------------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
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PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ..... $8.56 $8.08 $8.02 $9.52 $10.39 $10.28
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Income from investment operations:
Net investment income a ................. .06 .09 c .31 .42 .30 .30
Net realized and unrealized gains (losses) .94 .63 c (.01) (1.68) (.95) .12
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Total from investment operations ......... 1.00 .72 .30 (1.26) (.65) .42
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Less distributions from:
Net investment income ................... (.42) (.24) (.14) -- -- (.25)
Tax return of capital ................... -- -- (.10) (.24) (.22) (.06)
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Total distributions ...................... (.42) (.24) (.24) (.24) (.22) (.31)
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Net asset value, end of period ........... $9.14 $8.56 $8.08 $8.02 $ 9.52 $10.39
=================================================================
Total return b ........................... 12.03% 9.11% 3.78% (13.42)% (6.23)% 4.33%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ........ $86,032 $50,622 $29,071 $33,580 $56,381 $68,902
Ratios to average net assets:
Expenses ................................ 1.32% d 1.50% 1.49% 1.29% 1.09% 1.35%
Net investment income (loss) ............ 1.33% d 1.10% c 3.78% 4.73% 3.08% 3.07%
Portfolio turnover rate .................. .00% 76.27% 25.59% 54.69% .00% 96.41%
aBased on average weighted shares outstanding.
bTotal return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized for periods less than one year.
cEffective November 2000, the Fund adopted the provisions of the AICPA Audit and
Accounting Guide of Investment Companies and began [recording all paydown gains
and losses as part of investment income and amortizing all premium and discount
on fixed-income securities,] as required. The effect of this change was as
follows:
Net investment income per share ................................ $(0.05)
Net realized and unrealized (gains/losses) per share ........... 0.05
Ratio of net investment income to average net assets ........... (.61)%
Per share data and ratios for prior periods have not been restated to reflect
this change in accounting policy.
dAnnualized.
SEMIANNUAL REPORT
See notes to financial statements.
12
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Financial Highlights (CONTINUED)
ADVISOR CLASS
---------------------------------------------------------------
SIX MONTHS ENDED
APRIL 30, 2003 YEAR ENDED OCTOBER 31,
-----------------------------------------------
(UNAUDITED) 2002 2001 2000 1999 1998
---------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)
Net asset value, beginning of period ........ $8.58 $8.09 $8.03 $9.53 $10.41 $10.28
---------------------------------------------------------------
Income from investment operations:
Net investment income a .................... .08 .12 c .32 .37 .35 .33
Net realized and unrealized gains (losses) . .93 .64 c .01 (1.61) (.99) .14
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Total from investment operations ............ 1.01 .76 .33 (1.24) (.64) .47
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Less distributions from:
Net investment income ...................... (.44) (.27) (.17) -- -- (.28)
Tax return of capital ...................... -- -- (.10) (.26) (.24) (.06)
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Total distributions ......................... (.44) (.27) (.27) (.26) (.24) (.34)
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Net asset value, end of period .............. $9.15 $8.58 $8.09 $8.03 $ 9.53 $10.41
===============================================================
Total return b .............................. 12.10% 9.65% 4.10% (13.22)% (6.17)% 4.89%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ........... $6,093 $1,724 $450 $75 $3,827 $3,343
Ratios to average net assets:
Expenses ................................... .91% d 1.09% 1.17% 1.06% .99% 1.01%
Net investment income (loss) ............... 1.74% d 1.51% c 4.00% 4.13% 3.54% 3.29%
Portfolio turnover rate ..................... .00% 76.27% 25.59% 54.69% .00% 96.41%
aBased on average weighted shares outstanding effective year ended October 31,
1999.
bTotal return is not annualized for periods less than one year.
cEffective November 2000, the Fund adopted the provisions of the AICPA Audit and
Accounting Guide of Investment Companies and began [recording all paydown gains
and losses as part of investment income and amortizing all premium and discount
on fixed-income securities,] as required. The effect of this change was as
follows:
Net investment income per share ............................... $(0.05)
Net realized and unrealized (gains/losses) per share .......... 0.05
Ratio of net investment income to average net assets .......... (.61)%
Per share data and ratios for prior periods have not been restated to reflect
this change in accounting policy.
dAnnualized.
SEMIANNUAL REPORT
See notes to financial statements.
13
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
STATEMENT OF INVESTMENTS, APRIL 30, 2003 (UNAUDITED)
PRINCIPAL
AMOUNT VALUE
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CORPORATE BONDS (COST $100,097) .1%
Toronto Dominion Bank, 4.10%, 8/04/03 ............................................... $ 100,000 $ 100,662
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GOVERNMENT SECURITIES 65.4%
Belgium Treasury Bills, 2.410% to 2.545%, with maturities to 8/14/03 ................ 1,900,000 EUR 2,108,112
Canada Treasury Bills, 2.940% to 3.213%, with maturities to 8/14/03 ................. 2,847,000 CAD 1,969,069
Denmark Treasury Bills, 2.44% to 3.28%, with maturities to 2/02/04 .................. 50,290,000 DKK 7,486,334
Dutch Treasury Bills, 2.340% to 2.487%, with maturities to 9/30/03 .................. 3,050,000 EUR 3,375,090
Finland Treasury Bills, 2.45% to 2.86%, with maturities to 3/09/04 .................. 2,800,000 EUR 3,104,501
French Treasury Bills, 1.299% to 2.940%, with maturities to 1/08/04 ................. 2,900,000 EUR 3,204,130
German Treasury Bills, 2.394% to 2.650%, with maturities to 10/15/03 ................ 3,000,000 EUR 3,319,475
Government of Spain, 2.29% to 10.50%, with maturities to 10/30/03 ................... 2,708,610 EUR 3,024,793
Italy Government, 2.375%, 9/15/03 ................................................... 1,500,000 EUR 1,658,466
Italy Treasury Bill, 2.229%, 12/31/03 ............................................... 1,200,000 EUR 1,317,140
New Zealand Treasury Bills, 5.189% to 5.558%, with maturities to 3/17/04 ............ 27,860,000 NZD 15,291,017
Republic of Austria, 6.875%, 5/25/03 ................................................ 2,400,000 EUR 2,686,026
Republic of Greece, 6.60%, 1/15/04 .................................................. 3,200,000 EUR 3,674,397
Republic of Italy, 2.296%, 9/15/03 .................................................. 200,000 EUR 221,174
Republic of Portugal, 10.625%, 6/23/03 .............................................. 98,798 EUR 111,405
Sweden Treasury Bills, 3.38% to 3.88%, with maturities to 12/17/03 .................. 64,480,000 SEK 7,714,719
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Total Government Securities (Cost $57,326,621) ...................................... 60,265,848
-----------
U.S. GOVERNMENT AGENCIES 32.7%
Federal Home Loan Bank, 1.25%, 5/01/03 .............................................. 684,000 683,976
U.S. Treasury Bill, 1.056% to 1.111%, with maturities to 6/12/03 .................... 29,424,000 29,404,653
-----------
TOTAL U.S. GOVERNMENT AGENCIES (COST $30,087,594) ................................... 30,088,629
-----------
TOTAL INVESTMENTS (COST $87,514,312) 98.2% .......................................... 90,455,139
NET EQUITY IN FOREIGN CONTRACTS .9% ................................................. 792,324
OTHER ASSETS, LESS LIABILITIES .9% .................................................. 877,188
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NET ASSETS 100.0% ................................................................... $92,124,651
===========
CURRENCY ABBREVIATIONS:
CAD--Canadian Dollar
DKK--Danish Krone
EUR--European Unit
NZD--New Zealand Dollar
SEK--Swedish Krona
See notes to financial statements.
SEMIANNUAL REPORT
14
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2003 (UNAUDITED)
Assets:
Investments in securities:
Cost .......................................................... $87,514,312
------------
Value ......................................................... 90,455,139
Cash ........................................................... 1,095
Foreign currency, at value (cost $6,112) ....................... 6,155
Receivables:
Capital shares sold ........................................... 968,137
Dividends and interest ........................................ 278,830
Unrealized gain on forward exchange contracts (Note 6) ......... 812,076
------------
Total assets .............................................. 92,521,432
------------
Liabilities:
Payables:
Capital shares redeemed ....................................... 195,826
Affiliates .................................................... 138,720
Shareholders .................................................. 12,553
Unrealized loss on forward exchange contracts (Note 6) .......... 19,752
Other liabilities ............................................... 29,930
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Total liabilities ......................................... 396,781
------------
Net assets, at value ............................................ $92,124,651
------------
Net assets consist of:
Undistributed net investment income ............................ $ (587,059)
Net unrealized appreciation (depreciation) ..................... 3,749,710
Accumulated net realized gain (loss) ........................... 2,401,571
Capital shares ................................................. 86,560,429
------------
Net assets, at value ...................................... $92,124,651
------------
SEMIANNUAL REPORT
See notes to financial statements.
15
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES (CONT.)
APRIL 30, 2003 (UNAUDITED)
CLASS A:
Net assets, at value ............................................ $86,032,061
============
Shares outstanding .............................................. 9,414,302
============
Net asset value per share a ..................................... $9.14
============
Maximum offering price per share (Net asset
value per share / 97.75%) ..................................... $9.35
============
ADVISOR CLASS:
Net assets, at value ............................................ $ 6,092,590
============
Shares outstanding .............................................. 665,636
============
Net asset value and maximum offering price per share ............ $9.15
============
aRedemption price is equal to net asset value less any applicable contingent
deferred sales charge.
See notes to financial statements.
SEMIANNUAL REPORT
16
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Financial Statements (CONTINUED)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
Investment income:
Interest ......................................................... $1,009,262
----------
Total investment income ..................................... 1,009,262
----------
Expenses:
Management fees (Note 3) ......................................... 246,339
Distribution fees (Note 3)
Class A ......................................................... 148,037
Transfer agent fees (Note 3) ..................................... 48,499
Custodian fees ................................................... 5,800
Reports to shareholders .......................................... 3,400
Registration and filing fees ..................................... 30,500
Professional fees ................................................ 12,900
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Total expenses .............................................. 495,475
Net investment income ...................................... 513,787
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments ..................................................... 2,001,892
Foreign currency transactions ................................... 2,013,370
----------
Net realized gain (loss) .................................... 4,015,262
Net unrealized appreciation (depreciation) on:
Investments ..................................................... 2,856,335
Translation of assets and liabilities denominated
in foreign currencies .......................................... 301,413
----------
Net unrealized appreciation (depreciation) .................. 3,157,748
----------
Net realized and unrealized gain (loss) ........................... 7,173,010
----------
Net increase (decrease) in net assets resulting from operations ... $7,686,797
==========
See notes to financial statements.
SEMIANNUAL REPORT
17
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Financial Statements (CONTINUED)
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED APRIL 30, 2003 (UNAUDITED)
AND THE YEAR ENDED OCTOBER 31, 2002
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
------------------------------------
Increase (decrease) in net assets:
Operations:
Net investment income ............................................. $ 513,787 $ 438,938
Net realized gain (loss) from investments and
foreign currency transactions ................................... 4,015,262 2,272,236
Net unrealized appreciation (depreciation) on
investments and translation of assets
and liabilities denominated in foreign currencies ............... 3,157,748 631,414
------------------------------------
Net increase (decrease) in net assets
resulting from operations ................................... 7,686,797 3,342,588
Distributions to shareholders from:
Net investment income:
Class A .......................................................... (2,846,942) (1,114,494)
Advisor Class .................................................... (131,563) (23,469)
------------------------------------
Total distributions to shareholders ................................ (2,978,505) (1,137,963)
Capital share transactions (Note 2):
Class A .......................................................... 30,968,093 19,391,309
Advisor Class .................................................... 4,101,635 1,229,279
------------------------------------
Total capital share transactions ................................... 35,069,728 20,620,588
Net increase (decrease) in net assets ......................... 39,778,020 22,825,213
Net assets:
Beginning of period ................................................ 52,346,631 29,521,418
------------------------------------
End of period ...................................................... $92,124,651 $52,346,631
====================================
Undistributed net investment income included in net assets:
End of period ...................................................... $ (587,059) $ 1,877,659
====================================
SEMIANNUAL REPORT
See notes to financial statements.
18
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Notes to Financial Statements (unaudited)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Franklin Templeton Hard Currency Fund (the Fund) is a separate, non-diversified
series of Franklin Templeton Global Trust (the Trust), which is an open-end
investment company registered under the Investment Company Act of 1940. The Fund
seeks to protect shareholders against depreciation of the U.S. dollar relative
to other currencies by investing in high-quality, interest-bearing money market
instruments (and forward contracts), denominated in those major currencies which
historically have experienced low rates of inflation, and which are currently
pursuing economic policies conducive to continued low rates of inflation and
currency appreciation versus the U.S. dollar over the long term. The following
summarizes the Fund's significant accounting policies.
A. SECURITY VALUATION
Securities listed or traded on a recognized national exchange or NASDAQ are
valued at the last reported sales price. Over-the-counter securities and listed
securities for which no sale is reported are valued within the range of the
latest quoted bid and asked prices. Securities for which market quotations are
not readily available are valued at fair value as determined by management in
accordance with procedures established by the Board of Trustees.
B. FOREIGN CURRENCY TRANSLATION
Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such
currencies against U.S. dollars on the date of valuation. Purchases and sales of
securities and income items denominated in foreign currencies are translated
into U.S. dollars at the exchange rate in effect on the transaction date.
The Fund does not separately report the effect of changes in foreign exchange
rates from changes in market prices on securities held. Such changes are
included in net realized and unrealized gain or loss from investments.
Realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized between the trade and settlement
dates on securities transactions and the difference between the recorded amounts
of interest and foreign withholding taxes and the U.S. dollar equivalent of the
amounts actually received or paid. Net unrealized foreign exchange gains and
losses arise from changes in foreign exchange rates on foreign denominated
assets and liabilities other than investments in securities held at the end of
the reporting period.
C. REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements, which are accounted for as a loan
by the Fund to the seller, collateralized by securities which are delivered to
the Fund's custodian. The market value, including accrued interest, of the
initial collateralization is required to be at least 102% of the dollar amount
invested by the Funds, with the value of the underlying securities marked to
market daily to maintain coverage of at least 100%.
SEMIANNUAL REPORT
19
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Notes to Financial Statements (unaudited) (CONTINUED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONT.)
D. FOREIGN CURRENCY CONTRACTS
The Fund may enter into forward exchange contracts to hedge against fluctuations
in foreign exchange rates. A forward exchange contract is an agreement between
two parties to exchange different currencies at an agreed upon exchange rate at
a future date. These contracts are valued daily and the Fund's equity therein is
included in the Statement of Assets and Liabilities. Realized and unrealized
gains and losses are included in the Statement of Operations.
When the Fund purchases or sells foreign securities it may enter into foreign
exchange contracts to minimize foreign exchange risk from the trade date to the
settlement date of the transactions. Realized and unrealized gains and losses
are included in the Statement of Operations.
The risks of these contracts include movement in the values of the foreign
currencies relative to the U.S. dollar and the possible inability of the
counterparties to fulfill their obligations under the contracts.
E. INCOME TAXES
No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under the Internal Revenue Code and to
distribute all of its taxable income.
F. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS
Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Certain income from foreign securities is recorded as soon as information is
available to the Fund. Interest income and estimated expenses are accrued daily.
Distributions to shareholders are recorded on the ex-dividend date.
Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.
G. ACCOUNTING ESTIMATES
The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expense during the reporting period. Actual results could differ from those
estimates.
H. GUARANTEES AND IDEMNIFICATIONS
In the normal course of business the Fund enters into contracts with service
providers that contain general indemnification clauses. The Fund's maximum
exposure under these arrangements is unknown as this would involve future claims
that may be made against the Fund that have not yet occurred. However, based on
experience, the Fund expects the risk of loss to be remote.
SEMIANNUAL REPORT
20
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Notes to Financial Statements (unaudited) (CONTINUED)
2. SHARES OF BENEFICIAL INTEREST
The Fund offers two classes of shares: Class A and Advisor Class. Each class of
shares differs by its initial sales load, distribution fees, voting rights
affecting a single class and its exchange privilege.
At April 30, 2003, there were an unlimited number of shares authorized ($0.01
par value). Transactions in the Fund's shares were as follows:
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2003 OCTOBER 31, 2002
------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------
CLASS A SHARES:
Shares sold ......................................... 8,042,978 $ 71,332,174 6,959,064 $ 58,212,090
Shares issued on reinvestment
of distributions ................................... 254,043 2,178,111 103,709 845,233
Shares redeemed ..................................... (4,793,277) (42,542,192) (4,751,067) (39,666,014)
------------------------------------------------------------------
Net increase (decrease) ............................. 3,503,744 $ 30,968,093 2,311,706 $ 19,391,309
==================================================================
ADVISOR CLASS SHARES:
Shares sold ......................................... 558,159 $ 4,939,720 145,622 $ 1,231,628
Shares issued on reinvestment
of distributions ................................... 13,579 117,192 1,872 15,443
Shares redeemed ..................................... (107,154) (955,277) (2,103) (17,792)
------------------------------------------------------------------
Net increase (decrease) ............................. 464,584 $ 4,101,635 145,391 $ 1,229,279
==================================================================
3. TRANSACTIONS WITH AFFILIATES
Certain officers of the Fund are also officers or directors of Franklin
Advisers, Inc. (Advisers), Franklin/Templeton Distributors, Inc. (Distributors)
and Franklin/Templeton Investor Services, LLC (Investor Services), the Fund's
investment manager, principal underwriter and transfer agent, respectively.
The Fund pays an investment management fee to Advisers of 0.65% per year of the
average daily net assets of the Fund.
The Fund reimburses Distributors up to 0.45% per year of the Fund's average
daily net assets of Class A shares for costs incurred in marketing the Fund's
Class A shares.
Distributors paid net commissions on sales of Fund shares for the period ended
April 30, 2003 of $22,819.
SEMIANNUAL REPORT
21
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Notes to Financial Statements (unaudited) (CONTINUED)
4. INCOME TAXES
At April 30, 2003, the cost of investments, net unrealized appreciation
(depreciation), and undistributed ordinary income for income tax purposes were
as follows:
Cost of investments ............................... $87,590,825
============
Unrealized appreciation ........................... 2,875,900
Unrealized depreciation ........................... (11,586)
------------
Net unrealized appreciation (depreciation) ........ $ 2,864,314
------------
Net investment income and net realized gains differ for financial statement and
tax purposes primarily due to differing treatments of foreign currency
transactions and bond discount and premiums.
At October 31, 2002, the Fund had tax basis capital losses which may be carried
over to offset future capital gains. Such losses expire as follows:
Capital loss carryovers expiring in:
2003 ........................... $ 112,254
2004 ........................... 1,047,201
2005 ........................... 162,309
2008 ........................... 25,228
2009 ........................... 33,159
2010 ........................... 233,541
----------
$1,613,692
==========
5. INVESTMENT TRANSACTIONS
There were no purchases or sales of securities (excluding short-term securities)
for the period ended April 30, 2003.
SEMIANNUAL REPORT
22
FRANKLIN TEMPLETON GLOBAL TRUST
FRANKLIN TEMPLETON HARD CURRENCY FUND
Notes to Financial Statements (unaudited) (CONTINUED)
6. FORWARD CURRENCY CONTRACTS
At April 30, 2003, the Fund has outstanding forward exchange contracts as set
out below. The contracts are reported in the financial statements at the Fund's
net equity, as measured by the difference between the forward exchange rates at
the reporting date and the forward exchange rates at the day of entry into the
contracts.
IN SETTLEMENT UNREALIZED
EXCHANGE FOR DATE GAIN (LOSS)
---------------------------------------------
CONTRACTS TO BUY:
29,300,000 Swiss Franc ................................... U.S. $21,101,043 7/14/03 U.S. $548,137
10,800,000 Danish Krone .................................. 1,560,265 7/14/03 58,543
10,010,000 Australian Dollar ............................. 6,048,016 7/14/03 195,630
12,700,000 Norwegian Krone ............................... 1,802,185 7/14/03 9,766
----------- ---------
U.S $30,511,509 U.S. $812,076
---------
Unrealized gain on forward exchange
contracts. ............................... U.S. $812,076
=========
CONTRACTS TO SELL:
2,400,000 Swiss Franc ................................... U.S. $ 1,774,229 7/14/03 U.S. $(19,752)
=========== ---------
Unrealized loss on forward exchange
contracts ................................ $(19,752)
---------
Net unrealized gain on forward exchange
contract .................................. U.S. $792,324
=========
SEMIANNUAL REPORT
23
This page intentionally left blank.
LITERATURE REQUEST
For a brochure and prospectus, which contain more complete information,
including charges and expenses, call Franklin Templeton Investments at
1-800/DIAL BEN(R) (1-800/342-5236). Please read the prospectus carefully before
investing or sending money. To ensure the highest quality of service, telephone
calls to or from our service departments may be monitored, recorded and
accessed. These calls can be determined by the presence of a regular beeping
tone.
FRANKLIN TEMPLETON INVESTMENTS
GLOBAL GROWTH
Franklin Global Aggressive
Growth Fund
Franklin Global Growth Fund
Franklin Global Health Care Fund
Mutual Discovery Fund
Templeton Developing Markets Trust
Templeton Foreign Fund
Templeton Foreign Smaller
Companies Fund
Templeton Global Opportunities Trust
Templeton Global Smaller
Companies Fund
Templeton Growth Fund
Templeton International (Ex EM) Fund
Templeton World Fund
GLOBAL GROWTH & INCOME
Franklin Global Communications Fund
Mutual European Fund
Templeton Global Bond Fund
GLOBAL INCOME
Franklin Templeton Hard
Currency Fund
GROWTH
Franklin Aggressive Growth Fund
Franklin Biotechnology
Discovery Fund
Franklin Blue Chip Fund
Franklin Capital Growth Fund 1
Franklin DynaTech Fund
Franklin Flex Cap Growth Fund 2
Franklin Gold and Precious
Metals Fund
Franklin Growth Fund
Franklin Large Cap Growth Fund
Franklin Small-Mid Cap
Growth Fund
Franklin Technology Fund
Franklin U.S. Long-Short Fund 3
GROWTH & INCOME
Franklin Balance Sheet Investment Fund 4
Franklin Convertible
Securities Fund
Franklin Equity Income Fund
Franklin Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund 4
Franklin Natural Resources Fund
Franklin Real Estate
Securities Fund
Franklin Rising Dividends Fund
Franklin Small Cap Value Fund
Franklin Utilities Fund
Mutual Beacon Fund
Mutual Financial Services Fund
Mutual Qualified Fund
Mutual Shares Fund
FUND ALLOCATOR SERIES
Franklin Templeton Conservative Target Fund
Franklin Templeton Growth
Target Fund
Franklin Templeton Moderate
Target Fund
INCOME
Franklin Adjustable U.S. Government Securities Fund 5
Franklin's AGE High Income Fund
Franklin Floating Rate Daily
Access Fund
Franklin Floating Rate Trust 6
Franklin Short-Intermediate
U.S. Government Securities Fund 5
Franklin Strategic Income Fund
Franklin Total Return Fund
Franklin U.S. Government
Securities Fund 5
Franklin Federal Money Fund 5,7
Franklin Money Fund 5,7
TAX-FREE INCOME 8
Double Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free
Income Fund
Insured Tax-Free Income Fund 9
Tax-Exempt Money Fund 5,7
STATE-SPECIFIC
TAX-FREE INCOME 8
Alabama
Arizona
California 10
Colorado
Connecticut
Florida 10
Georgia
Kentucky
Louisiana
Maryland
Massachusetts 9
Michigan 9
Minnesota 9
Missouri
New Jersey
New York 10
North Carolina
Ohio 9
Oregon
Pennsylvania
Tennessee
Virginia
INSURANCE FUNDS
Franklin Templeton Variable Insurance Products Trust 11
1. Formerly Franklin Growth and Income Fund. Effective 5/1/02, the fund's name
changed; investment goal and strategy remained the same.
2. Formerly Franklin
California Growth Fund. Effective 9/1/02, the fund's name changed and its
investment criteria was modified to invest a majority of its net assets in
California companies, as opposed to at least 80% of net assets.
3. Upon reaching
approximately $350 million in assets, the fund will close to all investors.
4. The fund is only open to existing shareholders as well as select retirement
plans.
5. An investment in the fund is neither insured nor guaranteed by the U.S.
government or by any other entity or institution.
6. The fund is a continuously offered, closed-end fund. Shares may be
purchased daily; there is no daily
redemption. However, each quarter, pending board approval, the fund will
authorize the repurchase of 5%-25% of the outstanding number of shares.
Investors may tender all or a portion of their shares during the tender period.
7. No assurance exists that the fund's $1.00 per share price will be maintained.
It is possible to lose money by investing in the fund.
8. For investors subject to the alternative minimum tax,
a small portion of these dividends may be
taxable. Distributions of capital gains are generally taxable.
9. Portfolio of insured municipal securities.
10. These funds are available in two or more variations, including long-term
portfolios, portfolios of insured securities, a high-yield portfolio (CA) and
intermediate-term and money market portfolios (CA and NY).
11. The funds of the Franklin Templeton Variable Insurance
Products Trust are generally only available as investment options in
variable annuity or variable life insurance contracts.
12/02
Not part of the semiannual report
[LOGO OMITTED]
FRANKLIN(R) TEMPLETON(R)
INVESTMENTS
One Franklin Parkway
San Mateo, CA 94403-1906
WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL?
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ELIGIBLE SHAREHOLDERS CAN SIGN UP FOR EDELIVERY AT FRANKLINTEMPLETON.COM. SEE
INSIDE FOR DETAILS.
SEMIANNUAL REPORT AND SHAREHOLDER LETTER
FRANKLIN TEMPLETON HARD CURRENCY FUND
INVESTMENT MANAGER
Franklin Advisers, Inc.
DISTRIBUTOR
Franklin Templeton Distributors, Inc.
1-800/DIAL BEN(R)
franklintempleton.com
SHAREHOLDER SERVICES
1-800/632-2301
This report must be preceded or accompanied by the current Franklin Templeton
Hard Currency Fund prospectus, which contains more complete information
including charges and expenses.
To ensure the highest quality of service,
telephone calls to or from our service departments may be monitored, recorded
and accessed. These calls can be identified by the presence of a regular beeping
tone.
FTGT S2003 06/03
ITEM 2. CODE OF ETHICS. N/A
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. N/A
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. N/A
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS N/A
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES. N/A
ITEM 9. CONTROLS AND PROCEDURES.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant
maintains disclosure controls and procedures that are designed to ensure that
information required to be disclosed in the Registrant's filings under the
Securities Exchange Act of 1934 and the Investment Company Act of 1940 is
recorded, processed, summarized and reported within the periods specified in
the rules and forms of the Securities and Exchange Commission. Such
information is accumulated and communicated to the Registrant's management,
including its principal executive officer and principal financial officer, as
appropriate, to allow timely decisions regarding required disclosure. The
Registrant's management, including the principal executive officer and the
principal financial officer, recognizes that any set of controls and
procedures, no matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form
N-CSR, the Registrant had carried out an evaluation, under the supervision
and with the participation of the Registrant's management, including the
Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation,
the Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.
(B) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in
the Registrant's internal controls or in other factors that could
significantly affect the internal controls subsequent to the date of their
evaluation in connection with the preparation of this Shareholder Report on
Form N-CSR.
ITEM 10. EXHIBITS.
(A) N/A
(B)(1) CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
OF JIMMY D. GAMBILL, CHIEF EXECUTIVE OFFICER - FINANCE AND ADMINISTRATION,
AND KIMBERLEY H. MONASTERIO, CHIEF FINANCIAL OFFICER
(B)(2) CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
OF JIMMY D. GAMBILL, CHIEF EXECUTIVE OFFICER - FINANCE AND ADMINISTRATION,
AND KIMBERLEY H. MONASTERIO, CHIEF FINANCIAL OFFICER
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN TEMPLETON GLOBAL TRUST
By /S/Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date June 30, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.
By /S/Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date June 30, 2003
By /S/Kimberley H. Monasterio
Chief Financial Officer
Date June 30, 2003